South Korean banks’ delinquency rate fell in Sept 2024

The volume of newly delinquent loans shrank KRW0.5t during the month.

South Korean domestic banks’ delinquency rate on loan denominated loans fell 0.08 percentage points (ppt) to 0.45% in September 2024.

However, this is still 0.06 ppt higher than the same month in 2023, data from the Financial Supervisory Service (FSS) showed.

The volume of newly delinquent loans shrank by about $357.98m (KRW0.5t) in September compared to August 2024, whilst that of resolved loans expanded $2.08b (KRW2.9t).

For large companies, the delinquency rate fell to 0.04% from 0.05%.

The rate on loans to SMEs also declined, from 0.78% to 0.65%.

For household loans, the delinquency rate declined from 0.4% to 0.36% a month.

(US$1 = KRW1,396.7; as of 22 November 2024, 12:06PM)